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The Role of Gender in the Government Expenditure and Unemployment Nexus: An Investigation at Regional Level for Turkey

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  • Orkun ÇELIK

    (Corresponding author, Assistant Professor, PhD, Gümüşhane University, Department of Management and Organization, Vocational School of Social Science, Gümüşhane / TURKEY)

  • Elif ERER

    (Independent Researcher, PhD)

Abstract

We aim to explore the role of gender in the government expenditure and unemployment nexus at regional level for Turkey. For this aim, we use the dataset covering the period 2004- 2019 for 26 NUTS-2 regions in Turkey and employ a panel ARDL approach. The obtained empirical findings show that government expenditure and gross domestic product per capita provide overall, female, and male unemployment rates to diminish in the long term, which means the Keynesian approach is valid on the long term. Nevertheless, on the short term, government expenditure induces rises in the male and female unemployment rates. This result indicates the validation of the Abrams Curve Hypotesis in male and female unemployment rates on the short term. Also, inflation rate increases overall and male unemployment rate on the long term, but having significant and positive impact on only female unemployment rate on the short term. All these findings show that gender has a significant role in this nexus. The expected contribution of this study to literature is to investigate the impact of government expenditure on unemployment by gender at regional level for Turkey. We are of opinion that our empirical findings can guide policy makers in active plans fighting unemployment.

Suggested Citation

  • Orkun ÇELIK & Elif ERER, 2021. "The Role of Gender in the Government Expenditure and Unemployment Nexus: An Investigation at Regional Level for Turkey," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 112-128, June.
    • Handle: RePEc:rjr:romjef:v::y:2021:i:2:p:112-128
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    References listed on IDEAS

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    More about this item

    Keywords

    unemployment; government expenditure; gender; labour market; regional; Abrams Curve; gender discrepancy;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R5 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis
    • R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock

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